Sega's profits saved by digital sales

Sega has been saved from a disappearing financial period thanks to strong sales of its digital titles.

Sega’s digital games helped pull the publisher through nine months of a “harsh market environment” which saw low sales of its retail games, including Football Manager 2014 and Sonic Lost World.

The digital titles that made the biggest impact on Sega’s bottom line were RPG Phantasy Star Online 2 for PC and smartphones, Puyopuyo!! Quest and Chain Chronicle.

For its Consumer business in the last nine months to December 31th, 2013, which includes video games, Sega recorded revenues of 72.9 billion yen (£437.3m; $714.2m), up 19.7 per cent year-over-year, and operating income of 2.8 billion yen (£167.1m; $27.3m), up 436.7 per cent year-over-year.

Sega’s total profits for the period were 44.3 billion yen (£265.8m; $434.1m), which was up year-over-year compared to 3.1 billion (£18.3m; $30.1m).

For the full fiscal year, which ends in March, Sega estimates that it will see 485 billion yen ($4.8 billion) in revenues, up 51 per cent year-over-year, and profits of 47 billion yen ($460.2 million), up 41 per cent year-over-year.